Deck 1: Strategic Management

Question 1

Levitt (1983) argues that a major driving force for convergence between nations is ___________________.

Answer 1

Technology

Question 2

A corporate parent is adding a layer of cost to the businesses in its portfolio. In order to compensate for this cost, the corporate parent must be able to offer _______________________.

Answer 2

Parenting advantage

Question 3

Goold et al suggest using the parenting fix matrix to assess whether there is a good fit between the corporate parent and its businesses. To place a business on the matrix, two questions are asked. These are to what extent does the corporate parent understand the industry, and:

A) To what extent can the parent add value to the business
B) To what extent is the business related to the other businesses
C) To what extent is the business in an attractive industry
D) To what extent does the business have growth potential

Answer 3

To what extent can the parent add value to the business

Question 4

Business level strategy is concerned with _________________ strategy.

Question 5

Threat of entry and imitation are likely to be highest at the ______________ stage of the industry life-cycle.

Question 6

The wealth added index was created by a consultancy firm to measure the wealth created by firms for:

Question 7

The view that organizations' strategies are determined by the interests and beliefs of dominant coalitions is expressed in which academic area

A) Bounded rationality
B) The shareholder view
C) Stakeholder theory
D) Corporate social responsibility

Question 8

Mendelow (1991) has developed a model to assist in prioritizing stakeholders. The stakeholders are mapped using two variables, power and ______________.

Question 9

Sternberg (1997) argues that trying to balance stakeholders' needs does not work.

Question 10

The Rhine model of corporate governance awards high priority to shareholder needs relative to other models from around the world.

Question 11

Traditional financial measures used by firms tend to emphasize: Please select all that apply.

A) Past performance
B) Projected performance
C) Short term performance
D) Long term performance

Question 12

The use of performance measures acts as a control on management to ensure that they fulfil their _______________ duty to shareholders.

Question 13

Stakeholder mapping should be done in connection with a particular strategic proposal.

Question 14

The overriding concern for quoted companies in the USA and UK is for the interests of multiple stakeholders.

Question 15

The balanced scorecard is rated as below average in terms of how organizations view the framework.

Question 16

Benchmarking is a continuous process of measuring products, services and business practices against:

A) Firms that are recognized as industry leaders from any industry
B) Firms that are recognized as industry leaders from within the industry
C) Direct competitors
D) Any firm within the same industry

Question 17

The balanced scorecard approach requires that organizations start to measure things that they may have ____________________.

Question 18

The balanced scorecard approach is only appropriate for the private sector.

Question 19

The resource-based view of the firm has which of the following points of view?

A) That competitive advantage derives from being in the right industry with the right generic strategy
B) The outside-in
C) That competitive advantage derives from within the organization
D) That structure determines performance

Question 20

For a distinctive capability to be ______________________ it needs to benefit primarily the organization which holds it rather than its employees, its customers or its competitors.

Question 21

The value chain consists of:

A) The primary and secondary activities that are linked together in the making and delivery of a product or service
B) The primary and support activities that are linked together in the making and delivery of a product or service
C) The primary and peripheral activities that are linked together in the making and delivery of a product or service
D) Inbound logistics, operation, outbound logistics, marketing and after sales service

Question 22

The support activities of the value chain include firm infrastructure, human resource management, technology development and:

Question 23

Value chain analysis can be used to:

A) Analyse the macro-environment
B) Analyse the competitive environment
C) Analyse the industry environment
D) Analyse internal resources

Question 24

Rumelt (1991) is of the view that industry is the main driver for differential firm performance.

Question 25

The SWOT analysis can be used to: Please select all that apply.

A) Assess how internal strengths can be used to exploit opportunities in the environment
B) Assess how internal resources might need to change to cope with potential threats in the external environment
C) Help formulate a strategy
D) Imagine a number of possible futures

Question 26

The statistic that there will be a 50% increase in cars by 2030 presents both an opportunity and a threat to an oil company.

Question 27

Shell oil used the technique of ______________________ to look at a situation and try to see it in different ways by asking challenging questions.

Question 28

Government regulation will always make an industry less attractive.